Many are now hoping the markets remain in good stead as they look to finalise the dates for IPOs, such as UTI MF, Computer Age Management Services, Happiest Mind, and Angel Broking. Most of the issues are expected to come to the market in the second half of September.
Indian airlines are expected to post a consolidated loss of $4.1 billion this fiscal, similar to what they are estimated to have incurred in 2020-21, taking the total losses of two years to around $8 billion as a result of the pandemic so far, aviation consultancy and research firm CAPA said on Thursday. In a report, CAPA expects domestic passenger traffic to be around 80-95 million in 2021-22 as against 52.5 million in the previous financial year. However, despite this growth, it will be well below than around 140 million passenger volumes recorded in 2019-20, CAPA said in the report. This projection of the traffic volume does not take into account the anticipated third wave of the pandemic, it added.
If the entire amount of Rs 24,000 crore is raised, then it would be the biggest fundraising exercise by any Indian company ever.
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Government divestment reached record figures after the financial crisis, at the same time as promoters were required to bring down their stake in companies to 75 per cent or less.
Market experts said disruptions caused by the pandemic - to businesses as well as the filing process - and the sharp decline in valuations were the reasons behind fewer new companies wanting to tap the capital markets.
Reports suggest state-owned banks have lapped up Rs 40,000 crore, so far, using both bonds and equity instruments. The question, though, is whether there will be a perceptional change for PSB stocks.
Jet Airways, India's largest airline in terms of marketshare, is looking at an equity dilution, said Founder and Chairman Naresh Goyal.
Iron ore exporter Sesa Goa said on Friday it would raise Rs 6,000 crore by issuing various securities in domestic and overseas markets for funding its business plans.
The Kumar Mangalam Birla-led Hindalco Industries is likely to raise $500-million through a QIP or by other routes this fiscal to finance its expansion plans.
On Tuesday, Finance Minister P Chidambaram had more than adequately made clear that the government would be allocating Rs 14,000 crore through Budget, the Financial Services Secretary said.
Budget this year has allowed PSBs to bring down govt stake to 51%
The company obtained its shareholders' approval for its plans in the extraordinary general meeting held on Tuesday. This is the second time the Kishore Biyani-led Pantaloon is using the QIP route to raise money. The first time was three years ago, when the company raised Rs 260 crore (Rs 2.6 billion) by selling shares to institutions in 2006.
Public sector Bank of Maharashtra has sought government approval to raise Rs 1,500 crore in three years.
Pricing worries remain, but bankers expect IPOs to raise over Rs 40,000 crore (Rs 400 billion) in the next few months.
In the past four months, $7.5 billion has flowed back into domestic stocks, helping the benchmark indices bounce back more than 40 per cent from their 2020 lows.
SBI chief Rajnish Kumar said the focus going forward will be on cost reduction, rationalisation and reskilling of workforce, improving staff productivity and redeployment of workforce from admin offices to sales roles.
Sebi has tightened the rules for companies raising funds through share issues by barring those with less than one year of listing history from tapping the qualified institutional placement route.
RCom had net debt of about Rs 40,222.6 crore at the end of June 30.
SBI raised Rs 8,032 crore (Rs 80.32 billion selling 5.13 crore shares through a QIP in January.
"We have Rs 2,200 crore odd debt which we took to acquire a stake in Satyam... the purpose we are taking this QIP is to retire the high cost debt. My sense is that we are looking at retiring between Rs 500 crore and Rs 1,000 crore of debt," the newly appointed CEO of Tech Mahindra, Sanjay Kalra, said. On Tuesday, the Tech Mahindra board had approved the issue of 1.36 crore shares by way of Qualified Institutional Placement basis.
The trends remained sluggish in the primary stock market
Financials and auto stocks were the top losers while energy and IT shares recovered
Experts said equity raising was also hampered due to flight of capital from foreign investors. FIIs have sold more $500 million (Rs 3,200 crore) in October.
Record equity divestment by the Reliance Group in its telecom and retail businesses garnering around $23 billion revved up the deal street in 2020, which otherwise would have gone down as one of the dullest on record, and dealmakers are seeing sunnier days in 2021 given the large scope for consolidation in a slew of sectors ravaged by the pandemic. With Jio Platforms alone garnering over $16 billion (Rs 1,18,318 crore) by selling 25.24 per cent stake and Reliance Retail notching up $6.4 billion (Rs 47,265 crore) by divesting around 9 per cent shareholding, the deal street signed off with $85 billion in the deal kitty across 1,270 transactions. This is higher by about 10 per cent over 2019. What is significant is that over a third of the total deal value came from Reliance transactions, say investment bankers.
Previous peak in 2010 crossed in first five-and-a-half months this year.
Ironically, bad loans and non-performing assets are on the rise in public sector banks in India, say sector watchers.
'After that, volumes and prices would move up.'
The company will use the proceeds to part-repay its debt, which stands at Rs 34,000 crore (Rs 340 billion) even after the recent qualified institutional placement of its shares. An RCom board committee recently approved the sale of these assets.
'We have already sanctioned loans worth over Rs 3,000 crore to around 120,000 customers.'
In the broader market, the S&P BSE Midcap ended 0.1% down, while the S&P BSE Smallcap index gained 0.3%.
A fundraising boom in the domestic market and tightening of the regulatory framework for overseas issues are responsible for this trend.
Vishal Kampani has big shoes to fill as his father is close to the Ambanis, the Wadias and the Ruias, says Dev Chatterjee.
Sebi splits CMD post and has directed listed companies to have at least six directors and at least one of them needs to be a woman.
Punjab National Bank is the second largest PSU bank, in which government holding is 58.87 per cent.
The year saw 30 QIP deals raising over $5 billion and 35 IPOs.
Move aimed at avoiding crowding of public issues during the Centre's mega disinvestments in coming months.
The Sensex and the Nifty witnessed biggest one day loss in percentage terms since June 24
'India is still a cash economy.' 'For a common household, almost everything from grocery to maid services is paid in cash.' 'The demonetised notes account for 85 per cent of the currency in circulation.' 'Until fresh notes flow back into the economy, day-to-day transactions ordinarily done in cash will be impacted.'
Over the past two decades, India has evolved economically as well as from the market's perspective.
'The IPO window has been more or less open since the new government in 2014.'
